In using the payout-planning method of developing a marketing communications budget, a higher percentage is allocated to marketing communications in the early years of a product when the goal is building market share and high profits.

Question

Quizplus · Accepted Answer

The payout-planning method involves setting the budget based on the investment needed to achieve specific sales or market share objectives, without specifically allocating a higher percentage to marketing communications in the early years. It focuses on the expected return over time rather than the initial investment.

In Using the Payout-Planning Method of Developing a Marketing Communications